A RESEARCH TO IDENTIFY THE RELATIONSHIP BETWEEN CONSUMERS ATTITUDE AND MOBILE ADVERTISING

Transcription

1 A RESEARCH TO IDENTIFY THE RELATIONSHIP BETWEEN CONSUMERS ATTITUDE AND MOBILE ADVERTISING Maidul Islam, Management Information Systems, Graduate School, Ajou University, South Korea, Mincheol Kang, Department of e-business, School of Business Administration, Ajou University, South Korea, Sung-Byung Yang, Department of e-business, School of Business Administration, Ajou University, South Korea, Abstract This present study aims to investigate the relationships between mobile advertising characteristics and consumers attitude towards mobile advertising (ATMA). Based on prior literature, a conceptual model was developed to identify factors affecting consumers ATMA. 364 samples from Korea, India, and China were collected through online and offline questionnaire and five hypotheses were tested, using hierarchical regression analysis (HRA). Among the key findings, informativeness and credibility had significant impacts on ATMA where as other factors such as entertainment, irritation, and interactivity were not statistically significant. Keywords: Mobile advertising, consumer attitude, entertainment, informativeness, credibility, irritation, interactivity

2 1. INTRODUCTION We are about to enter a world where there are more tablets and smart phones than personal computers. A decade from now, just about everyone will have a Smartphone more powerful and user friendly than the best computers available today not only in the U.S., but in the rest of the world as well. Fastest growth in mobile means of communication has brought out new communication channels for marketers to reach their customers. Mobile marketing or mobile commerce is obtained from the concept of mobility. Mobile advertising is inexpensive and novel, and can be highly targeted towards a certain individual. The potential of mobile devices as direct marketing tools has not gone unnoticed and advertisers have realized the opportunity to use the mobile channel to text information to targeted consumers. New generation using mobile as a multipurpose means of communication by transferring data, watching videos, short message service, graphic, music, gamming, apps developing etc. Trinder, et. al. (2005), mentioned in their research work that mobile devices can be very efficient and can be employed as effective learning tools. Mobile device gives the advantage of the immediate readiness and used straight away with no boot up time. The Smartphone growth is more than four times the rate of the overall mobile phone this year due to increasing functionality and low cost data plans among other factors (Worldwide Quarterly Mobile phone Tracker, 2011). These new functionalities bring up new challenges for marketers and marketing researchers. Marketing through mobile devices (m-marketing) allows for innovating forms of customers relationship and is expected to lead to the development of numerous mobile commerce-based services (Barwis and Strong, 2002). As the mobile technology becomes a worldwide phenomenon and mobile carriers and content providers begin to have to perform on global scale, mobile advertising became popular topic and it is become important subject to consider different national culture when it come to advertising. Culture and advertising are fundamentally connected with each other. Consumers beliefs and attitudes towards advertising have been well mentioned in the marketing literature (e.g., Durvasula & Lysonski, 2001). As mobile technologies become a universal trend and mobile carriers and content providers perform on a global scale, empirical cross-country research on mobile advertising becomes increasingly relevant. For this reason, the research tried to find answers to the question whether consumers attitude on mobile advertising is same or different. As the goal of this study is to present an investigate consumers attitude on m-advertising, a survey among mobile phone users was carried out in Korea, India, and China. Looking on the technological development, China and India are fast adopting modern technologies and making great economic strides. South Korea, Taiwan, and Singapore have already leaped forward. These assumed differences in major cultural orientations demand a comparison of online advertising among different eastern countries.

3 This research paper is structured in the following way. At first, a review of literature in the context of characteristics of mobile advertising and findings on mobile based advertising is presented. The next section presents the research methodology and data analysis then, the results and conclusion. Finally, implications and limitation are discussed. 2. LITERATURE REVIEW According to Shavitt et. al., (2006), customer attitude towards advertising has been a main issue in advert long time and it has been extensively research in the past ten years. The most notable features of mobile ad strategies are high customer reach, high retention rate, customize and personalize message, localization, high feedback and low cost (Bauer, et. al., 2005). In case of direct marketing channel, quick response capabilities, web s interactivity capabilities via mobile phone certainly make mobile phones become one of the popular advertising media (Barwise & Strong, 2002).According to Leppaniemi and Karjaluoto (2005), mobile advertising, mobile marketing and wireless advertising were used interchangeably. Based on Heun (2005), work 12% of the consumer were willing to accept any forms of mobile advertisement if they are given choice of ads. Consumer trust, privacy and many other factors affect mobile advertising (Al-alak et. al., 2010). Tsang & Liang (2004), stated that rapid penetration rate of mobile phone has boosted delivery of advertisements for products and service. As a result advertisers are looking for creative ways to reach their target customers by using mobile phone Beliefs and attitudes It has been found in prior literature that attitude of a consumer towards advertising increasingly negative. Attitudes are mental conditions used by people to understand and react to situations, circumstances (Chowdhury et. al., 2006), objects, or ideas. Attitudes toward advertisements are consumers` inclinations to react to a particular message in a positive or negative way (Chakrabarty & Yelkur, 2005). Positive result has been found by most of the researchers (Calfee et. al., 1993; Rotzoll, et. al., 1986; Ryans, 1982). Fishbein and Ajzen (1975), in their study, argue that attitude affects behavior through intention. Tsang and Liang (2004), by using this theory, claimed that there was a positive relationship between attitude and intention for consumers to accept mobile advertisements and that intention affects consumer behaviors significantly. Many other researchers also work on consumer attitude toward mobile advertising and their relationship given in table-1.

4 Research Topic Authors Research Finding Determinants of Consumer Perceptions toward Mobile Advertising A Comparison between Japan and Austria Attitude towards mobile advertising: A study of Indian Consumers Generation Y Attitudes Toward Mobile Advertising Chia-Ling et. al. (2012) Punyatoya &Durgesh (2011) Koo (2010) This study found that infotainment and credibility are key factors predicting advertising value among Austrians and the Japanese. However, our findings show that Japanese customers are more irritated by mobile advertising than are Austrian respondents. Authors found that message credibility, consumer perception of message customization, message content, and consumer s ability to use mobile phone positively influence their attitude towards acceptance of mobile advertising. But consumer inertia negatively influence consumer mobile advertising acceptance Entertainment, informativeness, irritation and credibility are effective factors on consumers attitudes toward mobile advertising in clothes industry and such factors are different between American and Korean respondents An empirical study of factors affecting use of mobile advertising Factors affecting consumers responses to mobile advertising from a social norm theoretical perspective Entertainment and Informativeness as Precursory Factors of Successful Mobile Advertising Messages Effective factors on mobile advertising acceptance Mobile advertising ; consumer attitude and effective factors in creating positive attitude Costumer attitude toward advertising via mobile devices. An empirical investigation among Austrian Vatanparast & Ali (2010) Koury & Yang (2010) Blanco, et. al., (2010) Rabiee & Khoshelhan (2009) Sadeghvaziri (2008) Haghirian & Madlberger (2005) users An exploration of texting Maneesoonthern behavior and attitudes toward & Fortin permission-based advertising (2004) in new Zealand Table1. A brief summary of researches on mobile advertising The results of the survey have proven the conceptual model in the respective areas of Consumer (Privacy, Purpose and Performance), Message (Content, Credibility and Customization) and Media (Price, Process and Policy) at a statistically significant level. The study found that perceived usefulness (PU) of mobile advertising predicted attitude toward mobile advertising, whereas perceived ease of use (PEOU) of mobile advertising did not predict attitude toward mobile advertising. Lastly attitude towards mobile advertising significantly predicted the intention to adopt mobile advertising Firstly the results suggest that the entertainment and informational aspects perceived by consumers in mobile advertising affect their attitudes. Secondly there is an impact of general opinion about advertising on mobile attitudes Perceived usefulness and ease of use are factors which can impact customers' attitude toward mobile advertising Consumers generally have positive attitudes toward mobile advertising, and personalization and monetary benefit of mobile advertising have positive affect in creating positive attitude toward mobile advertising. Users attitude toward mobile advertising is negative and ads value and message content have the most impact on the attitude Respondents have negative attitudes toward mobile advertising and requesting permission has important impact on users tendency for receiving mobile advertising

5 3. RESEARCH MODEL 3.1 Conceptual Research Model Based on the literature review our research work proposed a conceptual model of Attitude towards mobile advertising. Mobile advertisements are expected to vary and to be influenced significantly in western as well as eastern countries. As stated before that majority of people are moving towards smart phone in all over the world, therefore the studies about attitude towards mobile advertising were carried out in respect to cultural orientation. The following diagram (Fig.1) presents the conceptual model underlying the study. Mobile marketing adoption and acceptance is on the rise (Becker, 2005), but without a clear concept of the factors affecting mobile advertising value for consumers, marketers will have less chance to constantly generate positive returns from their programs. Bauer, et. al., (2005), identified the influential variables affecting consumer behavior. According to Vatanparast and Asil (2007), the main components affecting consumer behavior are 1) Privacy, the degree to which personal information is not shared by others; 2) Purpose, the type of purpose the receiver is trying to satisfy by using a mobile device; and 3) Performance, response and attitude toward mobile advertising. Entertainment H 1 Informativeness Credibility H 2 H 3 Attitude Toward Mobile Advertising (ATMA) H 4 Irritation Interactivity H 5 Control Variables Age Gender Figure 1. Research Model The model (shown in figure 1) postulates the five Independent Variables, these are, information, entertainment, interactivity and credibility and irritation have influence on attitude towards mobile advertising. Cultural exercise a wide and deep impact on consumers beliefs and behaviors. Earlier in literature section we explain the positive influence of culture on consumer attitude.

6 3.2 Hypotheses Development Entertainment According to Ducoffe(1995), entertainment of advertising information is significantly related to advertising value of traditional advertising. Based on Hoffman and Novak (1996), a high degree of satisfaction and involvement while interaction with computer-based media leads to coexisting subjective perceptions of positive affect and mood of the consumer. Customer s emotion and enjoyment related with ads play the greatest role in accounting for their overall attitudes towards them (Shavitt et al, 1998). Entertainment play important role for mobile marketing. It is necessary to understand that the message should concise and funny which grab attention of consumers (Katterbach, 2002). According Nasco and Bruner (2008), the mobile advertisement also needs to incorporate qualitative features, such as accuracy, timeliness and usefulness for the users. Advertisement which is funny, entertaining, informative and are targeted to relevant group is more likely to increase purchasing intentions (Scharl, et al. 2005). Therefore we hypothesize that: H1: Entertaining content based mobile advertising will have a positive effect on attitude toward mobile advertising (ATMA). Informativeness In advertisement information play a significant role, it has the ability to convey beneficial information (Daugherty, et al. 2008), and it also provide utilitarian offer and practical information (Okazaki, 2005a). Advertisement with quality of information shows a direct influence on the customers perceptions of the company and the company's products. Similarly, information conveys to them via mobile media also needs to show qualitative features, such as accuracy, time lines and usefulness for the consumer. Moreover consumer want customized mobile content which is appropriate to them (Milne and Gordon, 1993). In online marketing information is treated as incentive and consumers react positively with the advertising which pay incentive (Varshney, 2003). According to Tsang et. al. (2004), perceived informativeness affects consumers attitudes toward mobile advertising in general. Therefore: H2: Informative mobile advertising will have a positive effect on attitude toward mobile advertising (ATMA). Credibility Mackenzie and Lutz (1989), characterized credibility in advertising as the degree to which consumers trust retailers advertising claims about their brands. According to Chowdhury et al. (2006), credibility is consumers confidence in the honesty and plausibility of the advertisement. Advertising credibility play a important role which create value of web advertising (Brackett and Carr, 2001). In other words, as

7 consumers perceive higher credibility, advertising value increases. According to Goldsmith et. al.(2000), and Lafferty, et. al. (2002), several components can influence credibility of an advertisement, namely company s trustworthiness. Okazaki, et al. (2007); & Okazaki (2004), defined credibility as the extent to which a customer recognize the company s reputation and to be trustable source of information. Therefore we hypothesize: H3: The perception of reliable mobile advertising will have a positive effect on the attitude toward mobile advertising (ATMA). Irritation According to Aaker & Bruzzone (1985), irritation in advertising can be termed as an advertisement that creates annoyance, unhappiness, and brief intolerance. Irritation comprises the only negative dimension of consumer attitudes towards mobile advertising (Altuna, et. al., 2009). One of the biggest issues for people to criticize advertisements is irritation. A large number of consumers are still quite uncomfortable with the concept of mobile business and doubtful about whether the businesses engaging in mobile advertising are reasonable and secure (Siau and Shen 2003). Based on Wong,Mandy M.T (2008), people react negatively when they perceive their freedom to choose is threatened. Due to comparatively low cost of advertising via short messaging service and multimedia messaging service, companies send collective short message without taking care of privacy or consumer concern. As a result of this, most people are irritated and disturbed because of these wrong marketing tactics (Rittippant, et. al., 2009). Therefore we hypothesized: H4: Irritation of mobile advertising message is negatively correlated with attitude toward mobile advertising (ATMA). Interactivity Interactivity is one of the most commonly cited benefits of mobile advertising. It is generated through applications on the mobile device which facilitate two way communications between the marketer and the potential customer. The mobile phone therefore known as an effective marketing tool (Vatanparast & Asil, 2007). Lohtia, et al. (2003), also explain the similar fact that mobile advertising consist of hyperlink and other elements (two way interactive communication) involved consumer more in real time communication. Studies have shown that functional interactivity contributes to positive perceptions of site content due to simple association. The higher the amount of interactivity, the greater its value as a peripheral cue it seems, especially in garnering users' appreciation for its functional design. Hence:

8 H5: Higher level of mobile advertising interactivity will have a positive effect on attitude toward mobile advertising (ATMA). 4. RESEARCH METHODOLOGY 4.1 Data Collection We collected our data through online as well as offline (paper and pencil) based survey to ensure the high level of return rate of the participant. The population of the study includes the consumers using mobile phones and living in India, Korea, or China. The first group of questions was prepared to determine the demographic characteristics of the respondents; the second group of questions was prepared to determine the experiences of the respondents regarding mobile advertisements. A questionnaire was developed first in English and then translated into Korean for Korean participants. Back-translation was conducted by bilingual third parties to improve the translation accuracy. Research participants were mainly students and office worker all over the part of Asia. The primary reason of giving more important to student-sample because we assumption that college students are using more smart phone and do online shopping in compare to other age groups, and hence are more likely to be exposed to mobile advertising. Over all 132 Korean questionnaires were collected, 122 sample from India, 110 from sample from Chinese nationality. Therefore our total number of sample was 364 for this research after missing data were taken out Demographic Characteristics Ultimately a total of 364 samples were considered for data analysis. From the Korean sample, 132 respondents were 97(73.48%) male and 35(26.51%) female. For the Indian sample, there were 109(89.35%) male respondents and 13(10.65%) female respondents and in case of China 31(28.1%) male respondents and 79(71.9%) female respondents. Table 2 provides an overview of the demographic distribution. Item Category Age 18~25 yrs 26~34 yrs 35~44 yrs 45~54 yrs 55~64 yrs Gender Male Female Korean Nationality Indian Chinese Table 2: Demographic data of respondents Frequency (Total No.=364) Percent Cumulative percentage

9 4.2 Scale Development Items for entertainment, informativeness, irritation and credibility were adopted from Xu (2007), and Ling et. al.,(2010). Irritation was derived from Xu (2007). Items for Interactivity was adopted from Liu (2002), and modified partially looking on the requirement of our research All measures were assessed via a five-point Likert-type scale ranging from strongly agree (1) to strongly disagree (5) Dependent Variable In our research study focused on consumer attitude towards mobile advertising (ATMA), which depends on nature of advertising i.e. entertainment, informativeness, interactivity and credibility and irritation. Consumer attitude towards online advertising and SMS advertising are the resource of our research model. Technology Acceptance Theory, Diffusion of Innovation Theory, and the Theory of Reasoned Action have been studied to clarify consumer attitudes towards mobile advertising Control variables The model also assumes that age and gender will influence attitude towards mobile advertising. Individual factor like irritation and attitude to mobile advertising could also be influence by the wiliness to accept mobile advertising. As it has been found that, older consumers show greater dislike for television advertising than younger and less wealthy consumers. According to Sun, et. al. (2010), significant gender differences in online advertising evaluation process. Specifically, informativeness is more important for males than for females where as entertainment is more important for females than for males and the interaction effect of informativeness and entertainment are stronger for females than for males. Males, younger consumers, and Americans tent to enjoy the advertisements and they tend to find advertising generally informative and useful in guiding their own decision report more favorable advertising attitudes than others (Shavitt, et. al., 1998). Research has shown that age group is a powerful predictor of understanding on the Internet, users having less technical and social understanding of the complex online environment (Yan 2006). Hence, the model with these perceptions, attitudes is tested in different demographic view 5. RESULTS In this research paper we used IBM SPSS 20.0 to conduct principal axis factor analysis with varimax rotation was conducted to examine the underlying structure of those 17 items measuring attitude toward mobile advertising. The rule of a minimum eigenvalue of 1.0 was referenced for extracting factors. A reliability score and factor loading were presented in Table 3. Attitude toward online advertising a single

10 items question were used to measure ATMA on a 5 point Likert scale ranging from 1 (strongly disagree) to 5 (strongly agree). Variable Items statistics Factor Cronbach s mean SD loading α I feel that receiving mobile advertising is enjoyable and.707 entertaining Entertainment To me it is amusing to receive mobile advertising Take pleasure in recalling.557 Mobile advertising is more enjoyable than other media.592 Keep me up to date about products/services available in the Marketplace.763 Informative- Provide valuable information ness I feel that mobile advertising is a good source for.661 timely information. Mobile advertising provides the information I need.736 Credibility Mobile advertising is credible( realistic) Mobile advertising is trustworthy The mobile advertising is believable.832 Irritation I feel that mobile advertising is irritating Contents in mobile advertising are often annoying Mobile advertisements are excessive and out of control.849 I like advertising with feedback forms, chat forum,.861 Interactivity download etc I preferred advertising with more than 3 hyperlinks in it.779 ATMA I am willing to receive advertising based on my prior permission Table 3. Reliability and Factor loading of scale items. To study the attitude of consumers towards mobile advertising, a one-way analysis of variance, ANOVA, was performed to examine the overall significance of model. Table 4 showed that the model 1, which is our control variables (age and gender) showed significant (0.005) relationship at a significant level of Whereas model 2 shows a great deal of significant relationship at the level of 0.001(see Table 4). Dependent variable: ATMA Model R R Square Table 4. Model Summary Adjusted R Square Std. Error of the Estimate Change Statistics R Square Change F Change df1 df2 Sig. F Change a b The analysis enables to examine the individual impact of the independent variables on the level of consumers attitude towards mobile advertising. Table 3 models 2, shows direct effects of all independent

11 variables which includes entertainment, informativeness, credibility, irritation and interactivity has significant impact (p<.001) on attitude towards mobile advertising. Therefore overall model reveal significant relationship. To test hypothesis H1, H2, H3, H4 and H5 regression analysis has been used. Table 4, shows that product entertainment has no significant relationship (.061) between ATMA (Beta = , p<0.05). Therefore H1 wasn t supported. Informativeness has (.000) with a Beta (3.905, p<0.001) and Credibility has (.002) with a Beta (3.158, p<0.01) has significant impact on consumers attitude towards advertising. Therefore H2 and H3 were supported. Whereas Irritation has (.372) with Beta (.894, p<0.05) and Interactivity has (.144) whit a Beta (1.465, p< 0.05) didn t showed any significant relationship. Therefore H4 and H5 were not supported even though the overall model showed significant relationship (See table 4 & table 5). M1 Constant 2.212(5.921).816(1.686) Age.298(2.962).201(2.099) Gender.322(2.157).156(1.100) H1 (Entertainment) -.204(-1.876) H2 (Informativeness).398***(3.905) H3 (Credibility).320**(3.158) H4 (Irritation).063(.894) H5 (Interactivity).111(1.465) M2 R-Square Adjusted R-Square Dependent variable: ATMA +p<0.1 *p<0.05 **p<0.01 ***p<0.001 Table 5 Result of regression 6. DISCUSSION The main contribution of this study is of two antecedents that influence the attitude toward mobile advertising in India, Korea or China. Among these five factors, the links between informativeness and credibility and the attitude toward mobile advertising were supported in all three countries. When consumers believe that mobile advertising is credible and trustworthy, they tend to have favorable perceptions about the value of advertising. Similar finding has been found in previous research done by Goldsmith, Lafferty and Newell 2000; Okazaki 2004; Wang and Sun (2010). Credibility is one of the crucial factors in establishing the customer client relationship. Next, the perceived value of advertising was found to be the most important determinant of consumers' attitudes toward advertising. Providing

12 information is one of the most important functions of advertising. In a competitive market place, advertisements need to be interesting and enjoyable to catch audiences' attention. Regarding irritation, people tend to view m-advertising negatively. Advertising has been criticized for promoting needs and desires that consumers may not have previously recognized and for creating insecurity and greed in society (Wang and Sun 2010). Past literature has established that irritation negatively affects advertising value and attitudes toward World Wide Web advertising (Ducoffe 1996; Luo 2002). However, our results show that the negative effect of irritation on advertising value was not significant; the hypothesis was not significantly supported. The result also shows that the there is a significant correlation between interactivity and ATMA indicating interactive ad will attract more target oriented customer. 7. CONCLUSION This study investigated whether there is a difference between the attitudes and behaviors towards mobile advertising. In this study, primarily the variables having roles in creating an attitude towards mobile advertisements, and the relationships between intention and acceptance rejection behavior towards mobile advertisements were investigated. According to the results, an advertisement s being informative, reliable, personalized, and its being sent with permission has a positive effect on creating attitudes towards mobile advertisements. The advertisements considered as irritating affect attitudes negatively where as entertainment and interactivity has not shown any significant relationship. The results obtained provided similar results to the studies conducted by Barwise and Strong, (2002), Xu (2007), Chowdhury et al. (2006), Usta (2009), Okozaki et. al.(2007), and Tsang, Ho and Liang (2004). Mobile advertisements acceptance behavior was suitable to the Theory of Reasoned Action (attitude, intention, and behavior) developed by Fishbein and Ajzen (1975) Limitations and Implications Despite the interesting findings and implications that were derived from this investigation, it is important to recognize its limitations and the need for additional research. The study presented here has limitations that face any cross-national research endeavor. This includes the comparability of the investigated samples, interpreting the survey items, and possible biases in response styles. While we account for some of these issues within the multi-group equivalence tests, not all possible biases have been accounted for. The sample size was 364 including three nations which are acceptable but bigger simple size could give better understanding about the subject. Even though we took sample from three different countries but the cultural impact has not considered in this research work. Culture could have a moderating effect on the relation between Mobile advertising and consumer attitude. A further research can be done on this to get in depth insight of the relationship. Furthermore, the mobile technology context is rapidly developing and

13 dynamic, thus the study may not fully capture the current market situation. The emergence of mobile technologies has allowed marketers and advertisers to apply a more radically innovative advertising channel: multimedia location-based advertising (Xu, et. al. 2009). This research would benefit from further investigation into other types of advertising that go beyond the merely text-based. Also, since this study investigates the attitudes of mobile advertising of three countries and most of the sample is university students, there are arguably issues regarding its generalizability. Although today's students are quite comfortable with the use of mobile phones and have strongly integrated them into their everyday lives, it is important that we test the hypotheses on samples that represent a broader range of mobile consumers and compare m-advertising across these different consumer profiles. Our study examines the relationship between the factors of mobile ad and attitudes towards mobile ad but future research could investigate the link between attitudes and real purchasing intentions and how the culture of different countries can moderate the relationship between mobile advertising and consumer attitude. Our research collected data from three Asian countries; further research can be on other Asian, European or American countries.

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